Indeed, some people will unsubscribe, and others may cancel their email altogether. Therefore, it's important to understand how many people disappear from your email list each month. Let's say 5% of your email subscribers drop out each month. This means that all your subscribers will disappear in 20 months. Therefore, the LTV of your email subscribers can be estimated as $1.50 per email subscriber x 20 months = $30. But most businesses can't wait 20 months to recoup their marketing spend. So you need to determine how quickly you'll be reimbursed. There are several factors to consider.
But the most important factor is this: if you have a lot of cash, you can afford a longer period than if you have very little. This is the secret of well-funded e-commerce businesses. They can afford to spend money overseas data acquiring without needing to see a positive ROI on that subscriber/customer for a long time. But if you're self-funded, you'll need to be repaid much faster. There's no exact rule, but let's say it's 3 months if you're self-funded and 7 months if you have a venture capital investment. This means Jim should be able to afford to acquire an email subscriber for $4.
50 if his business is bootstrapped and $10.50 if he is funded. The story gets better with email marketing for ecommerce once you know the value of each email subscriber Okay, let's say Jim's company is growing. That means he can afford to pay $4.50 to acquire an email subscriber. However, that's only part of the story. Let's say Jim can buy traffic for $1.00 per click. This means he would need 1 in 1 visitor to subscribe to his email list. This is a very high number and probably impossible.
email subscribers and customers
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